If you aren’t seeing progress in meeting your Forex trading goals, there might be a good reason for this. Many people are now opting to use automated system. This automated trading system gives them the edge.
The perks of automation are that it doesn’t have the same issues as a human will when making trades. It is fast, not based on emotion and can run multiple trades and strategies at once.
So how do you find that best trading software to give you the most significant benefit?
Ask yourself a few questions. How much time do you have to dedicate to trading? What is your overall strategy, and what financial goals are you trying to meet? The answers to these will help you determine the trading strategy that makes the most sense to you.
Find software that can match what you want to do in terms of goals or even one that comes with enough guides and information to help you make the decisions.
You ideally want an automated trading software that won’t directly interfere with your strategy, but in fact, will execute exactly what you need. Most automated trading software has a range of options when it comes to making trades. There will be wizards and walk-throughs that can give you the best options, or you can set the system up in a way that makes the best sense to you.
Trial the software if possible, and see how comfortable and intuitive you find it.
If you aren’t in the right space to be able to spend hundreds of thousands, then you need to make sure that the software you are thinking about using doesn’t have specific financial requirements. Many automated trading software will have the ability to start you on a low-frequency trade strategy, which means you can put less capital up and not eat into your returns.
You will need to pay close attention to the latency of the software. The time-delay between the price movement and what you are seeing could mean the difference between a big profit and a small one. Here are some quick numbers for you:
Let’s say there is a 0.4-second delay to transfer the price quote
Another 0.2 to reach you trading screen
0.1 for the software to receive a quote
0.1 to analyze
0.2 to reach the broker
0.2 to exchange
In total, you are looking at 1.2 seconds. So look for a software that minimizes the latency.
Using the historical data to make decisions on the next trades is essential. Back-testing will allow you to assess the profitability and performance of previous trades and data sets. The lack of this option can have you playing blind in some areas. So try to find a software that offers this ability as standard.
When you start using automated trading software, you need to be realistic about the possibilities. You have to work with the system in order to make good trades, and see a profit.